Danielle Dunfield-Prayero was the Conservative Party’s candidate for Wimbledon in 2024. She is part of the central team reviewing the Party’s election loss and serves as Chair of Conservatives For Business.

The Conservative Party has long been the party of business. Yet, the 2024 General Election loss revealed a concerning truth: our connection with the business community, especially small and medium-sized enterprises (or SMEs), has weakened.

Working alongside Lord McLoughlin, Lord Booth, and Matt Vickers MP to analyse the Conservative Party’s unprecedented defeat in 2024, I will not pre-empt our findings. However, with my background in finance, business, trade, and export, I understand the urgency of rebuilding trust and economic credibility. The starting point is clear: SMEs must be central to the Conservative Party’s future economic agenda.

SMEs: The backbone of the UK

SMEs are the lifeblood of the economy. As of early 2024, they accounted for over 99 per cent of UK private sector businesses—approximately 5.5 million companies. They employ 60 per cent of the private sector workforce, around 16.6 million people, and generate 52 per cent of the sector’s turnover—a staggering £2.8 trillion.

Yet, these businesses are more than just statistics. They are the real economy—entrepreneurs and risk-takers driving growth from the ground up. From local shops and hospitality venues to family-run manufacturers, tech start-ups, and professional service providers, SMEs create jobs, foster innovation, and sustain communities.

However, they face relentless challenges: high taxes, rising costs, and excessive red tape. Their resilience is at an all-time low, with many surviving on razor-thin margins while recovering from the dual shocks of COVID-19 and the energy crisis.  Too often, their unique perspectives are overlooked in policymaking circles. This is a situation that demands our immediate attention and action.

Why SMEs feel abandoned

Unlike large corporations with well-funded lobbying efforts, SMEs operate in silos, focused on survival rather than advocacy. They lack the time and resources to champion their interests in Westminster, leaving them politically adrift.

Successive governments have neglected their needs. Policies are often crafted with large corporations in mind – those with vast HR teams, compliance officers, and legal departments to navigate complex regulations. Meanwhile, SMEs drown in red tape, struggling to compete on a level playing field. This neglect is a reality that we must acknowledge and rectify.

This disconnect has real consequences. Government discussions about growth ring hollow if we fail to address the fundamental concerns of SMEs—lowering costs, increasing sales, and securing a reliable workforce. A strong UK economy depends on thriving SMEs, yet government policy rarely reflects this.

A party—and a country—in need of entrepreneurial spirit

The Conservative Party today faces challenges akin to an SME: resource constraints, fierce competition, and a pressing need for reinvention. Like a business in tough times, we must innovate, demonstrate resilience, invest in technology and skills, and rediscover our mission.

This is not about nostalgia but reclaiming what has made us successful: an unwavering commitment to free enterprise, entrepreneurship, and economic dynamism.

We must rebuild trust with the business community from the ground up. This means actively listening to SMEs, ensuring their voices shape our policies, and delivering tangible results that make starting, running, and growing a business easier in the UK.

Steps to rebuild trust

The path forward is clear:

• Cut costs for SMEs: Reduce corporation tax, ease National Insurance burdens, and invest in energy security and self-reliance.
• Reduce red tape: Simplify compliance processes for small businesses, especially those looking to export.
• Tackle workforce challenges: Enhance skills training, foster a culture that values hard work and dependability, and strengthen—not dilute—the successful apprenticeship reforms of the past decade.
• Champion sales and growth: Shift the economic conversation towards accessing new markets through technology and collaboration while establishing a long-term national export strategy.
• Create a direct SME policy forum: Establish structured, ongoing dialogue between SMEs and policymakers, ensuring business owners have a seat at the table.

Conservatives for Business: Leading the charge

To achieve these goals, we need a dedicated, independent network that interfaces SMEs and the Conservative Party – and gets things done quickly.

That’s why we are launching Conservatives For Business (CFB), a platform designed to foster meaningful engagement, shape policy, and ensure the Party once again becomes the natural home for business. CFB will offer more than just networking – it will create a genuine feedback loop between SMEs, policymakers, and economic outcomes.

CFB will provide:

• Supporter meet-ups: Regional networking events connecting business leaders and policymakers.
• Sector-specific roundtables: Direct engagement with Conservative MPs and Shadow Ministers to shape policy.
• A CFB speaker series: High-profile events featuring thought leaders from politics and industry.

Down the line, we will also introduce:

• Impact tracking: Demonstrating clear links between policy changes and SME growth, ensuring accountability and actual outcomes—not just rhetoric.

If we fail to act, we risk further alienating the companies that should be our strongest allies. Greater SME representation will also strengthen faith in our democracy. This must be a continuous effort, not an election-time gimmick. We need to commit to this cause for the long haul.

It’s time to rebuild

SMEs are the heart of our economy, communities, and culture. If the Conservative Party is serious about economic growth, it must prioritise supporting SMEs. Initiatives like Small Business Saturday UK are commendable, but SMEs need our support 24/7. This means listening, understanding, and delivering practical, common-sense solutions in consultation with those on the business frontlines.

Just as an entrepreneur revitalises a struggling business by focusing on core strengths, innovation, and customer needs, the Conservative Party must do the same. We must rebuild our pro-business credentials – not just in rhetoric but in action. Focusing on SMEs as the real economy, strengthening the feedback loop between policy and impact, and demonstrating tangible results will win back business support and help build the prosperous, enterprising society we all want to see.

Now is the time to listen, act, lead, and support British SMEs.

The post Danielle Dunfield-Prayero: Why SMEs must be at the heart of rebuilding our party’s relationship with business appeared first on Conservative Home.